Should I get a credit card in order to build my credit?

Question

I don't have one. I have enough bills already and don't want to pay interest or fees, but I'm nearly 30 and am worried I'm not doing enough to build my credit.

Answer 1

You should have a well rounded credit report. That would include major credit cards, store cards, loans (mortgage, car, etc)

Just because you have credit cards, major and store, does not mean you have to constantly use them or max them out. Use them to purchase something minor like a pair of socks, a McDonalds hamburger etc. Pay in full when receiving the statement and you will not be charge interest. Then stick the cards in a drawer or a safe, etc. In 6 months repeat. Make credit work for you.

You would take minor hits on your credit when applying for cards due to the inquirys, but the inquirys will have less of an impact in 6 months and no impact at one year.

Even with the minor hits for inquirys, you should soon see a positive impact on your credit scores. Plus, you may see a drop in the amount you have to pay for auto insurance, lower interest on future loans etc.

Answer 2

You only want a small balance credit card if you've been paying all of your bills in cash. This way you can pay on time and prove your credit worthiness. But if you have a car note and a credit card already, you should try reducing those bills first. You'll have to pay interest and fees because otherwise it wouldn't be considered a loan..it would be considered a gift that you can pay whenever you like.

Answer 3

Credit is HIGHLY overrated. There are millions of people living on a "Cash only" basis. (Myself included)

People are realizing that you don't have to have perfect credit in this day and age, and it is becoming so easy to get loans, bad credit is a thing of the past.

The biggest resistence that I receive, is "What about buying a house?" To be honest, I have no desire. When something breaks, I just call the landlord, and say "Hey, your roof is leaking. Fix it". Then the money that I would have spent on that, had I owned, can now go towards a vacation.

Don't get trapped by credit!! I would rather put my money in the bank, rather than give it to some credit card company for interest fees.

Answer 4

for a advice, do no longer flow with Sears or use it everywhere. I were given a sears mastercard, used it to purchase new outfits at 2 diverse shops. They despatched me the bill, and that i paid $30 on it, they despatched me the 2d bill and there became a finance fee. I stated as them and requested them why I had a finance fee because it became 6 months activity loose. They stated that became in reality on purchases made in sears. I informed them that became finished bull crap because mastercard is popular everywhere and it wasn't only a "Sears" card and to close the account in the journey that they prefer to screw me over like that. i stumbled on out 4 years in the past that they had reported to the credit bureau I declared financial ruin on that account. It took me a year to get them to take it off my credit document. I particularly have in no way dealt with them because and my father and mom also closed their card account with them. So my advice, shrink up the cardboard and in no way use it, it truly is no longer worth it.

Answer 5

That's good that you don't want to incur any excess debt. However, when it comes to credit scores, those looking at your credit report like to see that you have open accounts and maintain them. It's a ***** though. Nobody wants to be in debt, but you have to have some to show your responsible. What a racket.

Answer 6

Wanting to be a slave to the bank in order to become more of a slave later on.

If you don't have the cash don't buy it.

If in the event you want to get a house, many local smaller banks will underwrite a 15year fixed, if you have 20% down; even if you have no credit history.

http://www.daveramsey.com/

Listen to the man's show and get on board toward wealth.

Answer 7

Yes, you should !

There you go : http://simple-credit-cards-and-loans.com?=yh070308

Good luck !